Bankruptcy—is there any other word that stops small business owners dead in their tracks as quickly as this one? Want to avoid a Miami bankruptcy?
As attorneys who handle business restructuring and bankruptcy cases in the Miami area on a regular basis, we’ve seen our fair share of small and medium business owners making the wrong moves when trying to avoid bankruptcy. For this reason, we’ve compiled a list of our top five things that you need to do if your business is at risk of going bankrupt.
Want to keep your business alive to serve the Miami area for years to come? Use these five tips to restructure your business and avoid a Miami bankruptcy:
Work with Creditors
Business owners at risk of bankruptcy often make the mistake of thinking that their creditors are their enemies. Instead of dodging your loan holder’s calls, take some time to explain your situation to them. It won’t be a comfortable conversation, but it’s important that they understand that bankruptcy is on the table. Many creditors, once they understand that you are considering filing for bankruptcy, will offer a reduced rate repayment plan. Since bankruptcy often means that creditors won’t be getting paid back, they would rather be lenient with you now so you can bounce back and pay back your debt in full.
Ask Your Family and Friends for Help
This is a touchy subject, but with few other options for funding, approaching family and trustworthy friends can mean the difference between going bankrupt and financial recovery. But be diligent in your efforts not to take advantage of their generosity—money is notorious for ending relationships, if nothing else. With that in mind, only make a request for help after coming up with a budget and a plan to pay back your friends or family. You risk a lot when asking your circle of support for money; make sure the money you borrow is a solution and not just a temporary fix.
Reevaluate Your Expenses
The first thing you should do when you realize that a Miami bankruptcy might be in your business’s future is to look at what you are spending your money on. Are there any non-essential expenses draining your account? Cut back as much as possible without affecting the operation of your business.
Sell off Some Assets
When reevaluating your business expenses, you might come across some property that your business doesn’t need in order to run. Sell these off and use the money to pay down your debt.
Seek Legal Counsel from a Miami Bankruptcy Attorney
We’re not going to lie—dealing with your creditors and avoiding bankruptcy is going to be one of the most stressful things you ever go through. So why go through it alone? Hiring an attorney with experience in bankruptcy and financial expertise, like the legal team at AM Law, can help you get through this ordeal.
Is your business at risk of bankruptcy? Schedule a no obligation evaluation today.